Refinery Repairs: EFCC Recovers ₦9.4 Billion, $21.2 Million, Traces Properties To Officials

The Economic and Financial Crimes Commission (EFCC) has recovered over ₦9.4 billion, $21.2 million and several landed properties in its ongoing investigation into alleged diversion of funds released for the rehabilitation and turnaround maintenance of Nigeria’s refineries.

Based on the Central Bank of Nigeria (CBN)’s official exchange rate of ₦1,380 to a dollar posted on Friday, the $21.2m recovered amounts to about ₦29.26bn, bringing the total cash recovery so far to approximately ₦38.66bn.

The recoveries form part of a wide-ranging probe into the management of billions of dollars released for the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.

According to Premium Times, sources familiar with the investigation said the probe centres on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office and money laundering.

Those under scrutiny include officials of the Nigerian National Petroleum Company Limited (NNPCL), its subsidiary, NNPC Engineering and Technical Company Limited, former and serving managing directors of the Port Harcourt, Warri and Kaduna refineries, as well as major contractors, including Daewoo Engineering Nigeria Limited and Tecnimont SPA.

Between 2021 and 2023, the Federal Government, through NNPCL, awarded refinery rehabilitation contracts worth about $2.79bn.

The contracts included about $740.7m for the Kaduna Refining and Petrochemical Company, $492.3m for the Warri Refining and Petrochemical Company and $1.56bn for the Port Harcourt Refining Company.

Despite the huge financial commitment, investigators said they found no evidence of corresponding improvements in the operational status of the refineries.

According to EFCC sources, substantial portions of the funds were allegedly diverted, misappropriated or fraudulently disbursed by officials entrusted with executing the projects.

Investigators reportedly reviewed procurement procedures, contract payments, project execution levels and alleged weaknesses in financial controls.

More than 30 top NNPCL officials and over 50 officials of contractors and subcontractors involved in the rehabilitation contracts have reportedly been questioned.

The commission also sought information from the Corporate Affairs Commission (CAC), the Central Bank of Nigeria (CBN) and several commercial banks as part of the investigation.

One of the officials named in the probe, Ahmed Dikko, a former managing director of the Port Harcourt Refinery, was accused of abusing due process in the execution of the refinery rehabilitation contract.

Investigators alleged that Dikko approved direct payments to contractors from provisional sum funds, contrary to contractual provisions requiring such contractors to be engaged and paid by Tecnimont.

The EFCC said it traced ₦983.9m, $227,030 and three landed properties to him, which investigators said he could not satisfactorily explain.

An interim forfeiture order has reportedly been secured over the properties, while prosecutors are preparing charges.

Investigators also established what they described as a prima facie case against a senior Warri refinery official, Jimoh Yisawu.

Yisawu was accused of approving payments to unqualified third-party contractors, authorising inflated invoices and approving contractual mark-ups amounting to more than $10m and nearly ₦8bn.

He was also accused of approving payment vouchers without required cash-back arrangements, allegedly causing losses of about $7.47m and ₦1.89bn in tax revenue.

Investigators said more than ₦1.4bn and four landed properties were traced to him, with the properties placed under interim forfeiture pending prosecution.

EFCC sources said the recovered ₦9.4bn and $21.2m had been paid into the commission’s recovery accounts.

An additional $2.32m was reportedly recovered through the Federal Inland Revenue Service.

Investigators also disclosed that a separate case involving alleged revenue fraud of $28.39m and ₦665m had been established against the management of the Port Harcourt Refining Company, with efforts underway to recover the funds.

The EFCC said the probe remained ongoing and that additional recoveries and prosecutions were expected as more evidence emerged.

Nigeria has four state-owned refineries, including two in Port Harcourt, with a combined installed capacity of 210,000 barrels per day.